Transcript Gas Re-injection as CDM

Gas Re-injection as CDM: CCS or not?
Paul ZAKKOUR
ERM Energy & Climate Change
Overview
• Eligibility of reinjection projects in CDM
• Drawing analogues with CO2 capture and storage
• Should reinjection be treated same as CCS?
• What next for gas reinjection and CDM
Eligibility issues
• Flare reduction projects eligible in CDM
– AM0009 sets precedent
– 14 or so projects in pipeline
(10 in India?; 2 x Nigeria; 1 x Qatar; 1 x Vietnam)
– All take flare gas to market or other use
• Some work done on reinjection but eligibility
unclear
• Tends to draw analogue with CO2 capture and
storage (CCS)
Analogue with CCS
• CCS involves long-term/permanent isolation of CO2
from atmosphere
• COP12/MOP2 in Nairobi set big precedent for CCS
in CDM
• Result not too positive, sticking points include:
– Safety, legality, modalities, accounting issues etc,
"PERMANENCE" – probably major item
CCS in CDM – Nairobi decision
• Request submissions of more methodologies and project
design documents for CCS operations – improve
understanding
• Range of actors to participate in regional capacity building
workshops for CCS
• NGOs to further clarify the outstanding issues by 31st May
2007
• Parties to make submissions by 21st September 2007 on
outstanding issues
• Request SBSTA27 to prepare recommendations on CCS in the
CDM for the COP/MOP3, and with a view to reaching a
Decision on the matter by COP/MOP4 (2008)
Is CCS a good analogue?
• An issue largely driven by purpose of the reinjection
project
Here, permanence
Here, permanence
not such an issue
as we know the
purpose of the
project is nearterm flare
abatement
Here, permanence
could be an issue,
although CH4 very
different properties
to CO2
is an issue.
Temporary
CH4 storage
Permanent
CH4 storage
CO2 capture
and storage
Purpose of CH4 reinjection
• CH4 temporary storage to avoid flaring in the
absence of a current market for associated gas
(AG), or levelise supply, then may be appropriate to
consider gas storage as a flare reduction activity
• CH4 permanent storage for the purpose of
permanent climate change mitigation (i.e. to avoid
release of CH4 to the atmosphere), then the analogue
with CCS may be considered appropriate
• CH4 reinjected for enhanced oil recovery (EOR):
additional issues around incremental hydrocarbon
production
• Unclear how to handle a change in purpose
Current eligibility of flare projects
CDM Crediting Period
CO2 emissions
Emissions
reduction
Displaced emissions.
These emissions still occur
contemporaneously with
the project, but outside of
the project boundary
Project emissions
Time
Temporary storage – is it eligible?
CDM Crediting Period
Emissions
reduction
Reinjected gas
recovered and
combusted at a later
date once a market is
available. Emission
reductions are not
contemporaneous with
the project
Project
emissions
Other issues
• In respect of both AG reinjection and CCS, it is
unclear what would constitute good site selection
• Unclear on monitoring requirements
• CH4 and CO2 have fundamentally different
properties, and it is unclear whether it is credible to
draw the analogue
• It is also unclear whether a DOE or host country
regulator is sufficiently competent to approve such
an application
Summary of issues and findings
• CH4 temporary storage to avoid flaring in the absence of a
current market for associated gas (AG), or to levelise supply may be appropriate to consider gas storage as a flare
reduction activity
• CH4 permanent storage for the purpose of permanent climate
change mitigation (i.e. to avoid release of CH4 to the atmosphere)
- the analogue with CCS may be considered appropriate
• CH4 reinjected for enhanced oil recovery (EOR): additional
issues around incremental hydrocarbon production
• Unclear how to handle a change in purpose
• Approvals may be a challenge on a number levels including
site selection, monitoring and verification